Strategy Shifts Reserves to Include Dollar Cushion, Analysts Back Decision

Strategy's Executive Chairman Michael Saylor has explained that the firm's reserves will no longer be composed entirely of cryptocurrency. This decision was made after analysts from TD Cowen and Benchmark reaffirmed their 'buy' recommendation for Strategy's shares, supporting the shift from pure Bitcoin reserves.

During a recent investor call following the second quarter results, Saylor stated that demand for preferred shares is 50-100 times greater than for any other company asset. The primary goal is to return STRC preferred shares to the $99-100 range, which will enable the firm to raise funds to purchase Bitcoin.

Strategy's management highlighted that institutional investments in STRC have risen from $1.1 billion to $3.1 billion since March, with their share increasing from 22% to 29%. The average position has doubled to $3.5 million, but the firm's stock price fell by more than 4% to $93.28 after the latest trading session.

Analysts' price targets varied, with Benchmark lowering its target from $570 to $435 and TD Cowen projecting $260 per share. Mizuho noted that Strategy 'weathered the storm' during a digital gold price drop.